Thread by @LHSummers

The big fiscal news is that the nation will not make the colossal error of letting stimulus lapse. That would have been hugely risky and ill advised.

But the set of compromises reached and not reached are-- in important respects--bizarre and unfortunate. This does not bode well

The lack of support for state and local government will mean hundreds of thousands more without work, more crime, more fires, and more kids falling behind. The business liability issue is in comparison a triviality that should have been compromised.

The business meals deduction that has been put back in may be the dumbest tax provision enacted in the last decade which, given the 2017 Act, is a strong statement. It make even the break for carried interest look good.

I cannot fathom the logic of allowing businesses to deduct costs that were paid for by refunded PPP loans. Am I missing something?

Except by invoking the idea that politicians like handing out universal gifts, I cannot see the logic of giving 10s of millions of families where the adults are fully employed and the big problem is that they can’t because of Covid go out and spend checks for $2000.

Much better to do more for the perhaps 20 percent of earners whose earning power has been way disrupted by Covid.

I hope that there will be more control of the business welfare aspects of PPP than the first time round.

Any dollar that can be spent on vaccinating, testing and bribing those who may be infected to stay home has payoffs of 10 to 1 or more and should be the biggest priority.